Samsung C&T shareholders approve Cheil Industries takeover offer

Samsung’s founding family has scored a narrow proxy battle win against activist investor Elliott Associates opposed to an $8 billion deal from Cheil Industries.

Samsung C&T investors approved the all-share takeover offer from Samsung’s de facto holding company with 69.53% of shares in favor of the deal.

Elliott, which has a 7.1% stake in Samsung C&T, led the charge against the deal, along with a group of domestic retail investors.

Each of the two firms has stakes in Samsung’s companies, including tech giant Samsung Electronics.

“We will listen to those who opposed the deal and pledge to better engage with our shareholders and be more open to their input and feedback.”

-Samsung C&T, Cheil Industries; in a joint statement

“Scary Shareholders”

“The chaebols won’t be able to simply have their way anymore. They have probably all realized now how scary shareholders and the market can be.”

-Park Jung-hoon, HDC Asset Management fund manager

During the spat, Elliott filed for two injunctions to stop the vote.

“Elliott is disappointed that the takeover appears to have bene approved against the wishes of so many independent shareholders and reserves all options at its disposal.”

-Elliott Associates

83.57% of eligible votes were cast, and 1,000 people crowded a southern Seoul conference hall and three overflow rooms reserved for the meeting.

Source: Reuters


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